Mafia Ties & Condo Chaos

🤌🏼 Mafia Ties Exposed in GTA Real Estate Scheme

• Wiretaps from 2019 show alleged mafia boss Angelo Figliomen discussing a $30-million real estate deal, and police suspect money laundering through GTA real estate.

• Figliomeni owns at least 8 properties in the GTA, with companies he controls owning an additional 7 properties.

• In 2021-2022, Figliomeni bought homes worth $2.2 million and $1.3 million, respectively.

• The Caliber Homes company was involved in deals with Figliomeni, including $460,000 payments to a company he controlled.

Why This Matters: Real estate companies have weak anti-money laundering enforcement, making the market attractive for money laundering. Experts warn money laundering in real estate can drive up housing prices, making affordability harder for average buyers.

👷🏽 Canadian Lenders Forced to Complete Condo Projects

• Receiverships in 2023 reached a decade-high and are on track to exceed this in 2024.

• Lenders have conducted credit bids for projects, including a condo in Ontario’s wine country, an apartment outside Toronto, and suburban townhouses.

• CBRE notes lenders are turning developers out of necessity despite lacking construction experience.

Why This Matters: Rising interest rates have forced creative measures to avoid losses, with lenders banking on a housing recovery to recoup investments. Investors might find opportunities in distressed assets but should consider risks tied to completion and market recovery timelines.

💸 Cashback Deals Shake Up Realtor Commissions

• Cashback realtors and innovative commission models are saving buyers and sellers thousands o dollars by rethinking traditional real estate fees.

• Due to class-action lawsuits, U.S. real estate commissions are expected to drop 20-30%, potentially influencing similar trends in Canada.

• Canada’s real estate commissions are among the highest globally, typically 5-6% (split between buyer & seller), compared to less than 1.5% in countries like the U.K.

• In Canada, commission rates are not regulated and are fully negotiable, though traditional agents often resist rebates to maintain higher income levels.

• New models like Zown focus on affordability and accessibility, offering cashback incentives and tools to streamline home-buying.
  (👉 Check out Zown’s Cashback Offering for Homebuyers)

📈 Canada See Rise in HELOC Borrowing Activity

• A Home Equity Line of Credit (HELOC) is a loan that loan that allows homeowners to borrow against the equity in their homes.

• As of September 2024, HELOC balances rose by 0.4% month-over-month, reaching $170.8 billion—the highest level since November 2022.

• This marks a 3.0% annual increase (+$5 billion), highlighting a rapid uptick in borrowing relative to prior years.

• HELOC growth is now closely mirroring the rate of mortgage borrowing, which traditionally outpaced equity line utilization

Why This Matters: The increase in HELOC debt reflects renewed confidence in home value stability, with homeowners leveraging equity to finance renovations, consolidate debt, or fund new investments.

✈️ 1 in 5 Immigrants Leave Canada Within Years

• 1 in 5 immigrants who arrived in Canada between 1982 and 2019 have left the country.

• Over a third of those who left did so within the first five years of arrival.

• Economic immigrants are most likely to leave, with 48.1% of those who migrated under skilled trade programs, provincial nominees, or entrepreneur visas leaving.

• Family-sponsored immigrants comprised 33.6% of those who left, and refugees 8.6%.

Why This Matters: Canada invests heavily in attracting and integrating immigrants and training and upskilling programs. When immigrants leave, the country loses the value of this investment, including newly acquired skills and work experience.

🤔 WTF of The Week

The gap between pre-construction and resale condo prices is still massive, and until that narrows, pre-con sales will remain weak. Developers aren’t budging on their prices and are delaying launches, while buyers, for the most part, are steering clear.

For condo owners, this could work in your favor. Fewer pre-con launches mean less future supply, eventually pushing resale prices higher. But for buyers? Stick to resale—it’s the better move right now.

🛠 Our Trusted Providers

Tired of dealing with riff-raff service providers in real estate? These are our Trusted Providers—handpicked by Urban 411, so you can leave the guesswork at the door.

Cardinal Law

The law firm for real estate investors in Ontario
Virtual, paperless, and secure for stress-free REI and private lending deals. Urban 411 members get a free corporate structure review, free will & estate plan review, plus 10% off any related work. 👉 Learn More About Cardinal Law

Zown

Empowering Canadian home buyers with innovative solutions.
Zown is reshaping the home-buying journey with offerings like 1.5% cash back on purchases. Their growing realtor network also enables licensed agents to unlock additional income while providing unmatched value to homebuyers. 👉 See Zown’s Offering

HomeAbroad

Your One-Stop Solution for Canadian Investments in U.S. Real Estate
Unlock the U.S. property market with HomeAbroad’s 30-year fixed-rate mortgages, tailored specifically for Canadian investors! With no need for a U.S. credit history, you can qualify based on the property’s income rather than personal income or assets. Start your U.S. investment journey with ease. 👉 Get a Free Mortgage Rate Quote Now

Mech Physio

Your solution for better mobility and pain relief.
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WERCR (We Are Costa Rica)

Real estate experts for Canadians investing in Costa Rica & Panama
With over 20 years of experience assisting Canadians in investing in Costa Rica and Panama, WERCR offers comprehensive, concierge-level buyer representation—guiding clients from discovery tours and property purchases to residency and immigration support. 👉 Learn more about investing in Costa Rica & Panama

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